FCC head outlines net neutrality rules

His
proposal on net neutrality, which is expected to be approved by the
agency’s other two Democratic commissioners, is bad news for Internet
and wireless companies that say they need the flexibility to manage
their networks.

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The FCC has four guidelines for how
Internet service providers can manage their networks, such as
prohibiting network operators from blocking access to lawful content or
preventing consumers from attaching non-harmful devices to the
Internet.

Genachowski, speaking at the Brookings Institution,
outlined two additional guidelines for providers and proposed that they
be adopted by the agency in a formal rulemaking. Under his proposal,
broadband providers could not discriminate against particular Internet
content or applications, “nor can they disfavor an Internet service
just because it competes with a similar service offered by that
broadband provider.” Internet service providers also would have to disclose network management practices to customers.

“Today,
broadband providers have the technical ability to change how the
Internet works for millions of users — with profound consequences for
those users and content, application and service providers around the
world,” he said. “We could see the Internet’s doors shut to
entrepreneurs, the spirit of innovation stifled, a full and free flow
of information compromised. Or we could take steps to preserve Internet
openness, helping ensure a future of opportunity, innovation and a
vibrant marketplace of ideas.”

Genachowski said his
proposals are not intended to bog the Internet down with regulations,
but rather to “set the rules of the road to protect and open and free
[the] Internet.”

“With
health IT and smart grid technologies, we have seen the profound role
that the Internet can play in addressing national issues such as
healthcare and climate change,” she said in a statement. “The more the
Internet encourages investment, innovation and consumer choice, the
more effective it will be to tackle these other challenges.”

Republican
lawmakers have strongly cautioned against governmental interference
with the Internet. Sen. Kay Bailey Hutchison (R-Texas), ranking member
of the Senate Commerce Committee, introduced an amendment to the
Interior Appropriations bill that would prohibit the FCC from spending
funds to develop and implement new regulatory mandates.

“Even during a severe downturn, America has
experienced robust investment and innovation in network performance and
online content and applications,” Hutchison said. “For that innovation
to continue, we must tread lightly when it comes to new regulations ...
The case has simply not been made for what amounts to a significant
regulatory intervention into a vibrant marketplace. “

Wireless
carriers have taken a similar stance, arguing that imposing net
neutrality regulations would stifle innovation and reduce investment.
Chris

Gutman-McCabe, vice president of regulatory affairs
for the CTIA, the wireless industry’s trade group, said placing
requirements on wireless networks discourages companies from investing
in their expansion. He also said the rules could have adverse effects
on emerging wireless technologies.

“How do the rules apply to
the single-purpose Amazon Kindle?” he asked. “How about the efforts
from Apple to Android, BlackBerry and Nokia, Firefly and others to
differentiate the products and services they develop for consumers?
Should all product and service offerings be the same?”

Walter
McCormick, president of trade group USTelecom, said he is encouraged
that Genachowski said the FCC would address any violations of the
principles on a case-by-case basis, but said the proposal may go too
far.

“We will proceed with an open mind, but we also believe
the bar needs to be set very high when it comes to additional
government intervention that could potentially disrupt the tremendous
innovation and investment that have defined U.S. broadband for the past
several years under the FCC’s existing open-Internet principles.”

But
the public interest groups that have been pushing for net neutrality
rules for more than three years cheered Genachowski’s announcement. Ben

Scott, policy director for Free Press, called the proposal
the “elixir of consumer choice and confidence we’ve been waiting to
see.”

“This is not heavy-handed
government regulation,” she said. “As the chairman said, his proposal
is just the opposite. It lifts the heavy hands of private-sector
regulation in favor of openness and freedom.”

Genachowski is expected to set formal plans for the rulemaking process at the FCC’s October meeting.

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There
is still some debate over whether the FCC has the authority to adopt
such rules. Comcast is fighting an FCC ruling that said the company
violated the principles by blocking a video service. Comcast and other
service providers argue the FCC did not have legal rights to issue
sanctions.

Verizon Vice President of Regulatory Affairs David
Young said the company supports an open Internet, but argued that
placing formal rules over network operations could lead “to unintended
consequences.”

“We certainly don’t want to see the Internet
locked in stone as it is today,” he said. “The Internet needs to be
free to continue to evolve. … I’m pleased to hear the chairman intends
to do only what was needed and not more.”

The FCC also launched www.OpenInternet.gov to allow the public to participate in the rulemaking process.